#16 Deeptech Analysed - Building a Sustainable Future: Decarbonizing Cement and Steel & Navigating the Future: The Regulatory Framework for Air Taxis in Urban Areas
What are this week investment & business opportunities? March 20th - 16th 2023
THIS WEEK…
1️⃣Decarbonizing a heavy industry: cement & steel
2️⃣EASA's Regulatory Framework for Air Taxis in Urban Areas: What It Means for Markets and Society
Building a Sustainable Future: Decarbonizing Cement and Steel
By Vishal Katariya, External Contributor (Deep Science and Technology Investments, Ankur Capital)
What is going on?
Cement and steel together form a critical component of our modern industrial economy. However, they are also extremely resource-intensive. It is now critical to find ways to decarbonize the processes involved in producing them.
The most carbon-intensive steps in steelmaking are the production of coke and the reduction of iron ore in a blast furnace. Cement, on the other hand, produces carbon emissions both directly (from the heating of limestone to generate lime) and indirectly (from the burning of fossil fuels to fire the kiln).
There are a number of low-intervention improvements that can be made for incremental decarbonization. For steel, two such improvements are utilizing waste heat and improving overall efficiency. Similar interventions exist for cement, such as switching to composites like PPC. Such improvements can reduce the total emissions by 10-20%.
Carbon capture offers great promise–this involves chemically or physically capturing the carbon dioxide released during the fuel-burning process. For cement production, in fact, carbon capture is the primary path to decarbonization. More work on the technology is needed both to reduce the cost as well as make the process more efficient in terms of capturing all the CO2 emissions. Market entry for widespread adoption of carbon capture techniques in cement production is expected only in the following decade.
Other novel approaches also exist to decarbonize cement production, such as using alternate materials and fuels and incorporating biological systems and microorganisms. US-based Brimstone has developed a new process to source lime from calcium silicate instead of limestone. Companies like Prometheus Materials and BioZeroc are using algae and bacteria to generate zero-carbon cement.
With regards to steel, huge efforts have focused on incorporating green hydrogen as a fuel to convert iron ore to metallic iron. This has followed decades of research and development work in the direct reduction (DRI) process as well as in electric arc furnaces (EAF). Technologically, these processes are quite mature, and what remains is to execute them at the massive scale of modern steel production.
What does it mean?
There is a huge push both from a technological as well as a policy lens to decarbonize these industries. This means that major projects for green steel and cement are underway around the world, using a wide variety of approaches.
Many European steel manufacturers are leading the way when it comes to green steel production–H2 Green Steel is set to lead the way with its carbon neutral steel plant in Boden, Sweden, to open in 2025. Other large steel players are entering the green steel industry too, such as Thyssenkrupp and ArcelorMittal which are investing heavily into low- and zero-carbon steel production.
However, hydrogen is not the end-all and do-all of green steel approaches. There are a number of alternate approaches in the works too. For example, USA-based Boston Metal has developed a process called molten oxide electrolysis, wherein the iron ore is reduced to metallic ore directly via the application of electricity. ArcelorMittal has partnered with LanzaTech to develop a synthetic biology technology called Carbalyst, where carbon-rich waste gases are captured and upcycled into recycled chemicals and fuels.
Why does it matter?
💸For markets: a heavy industry that worth trillion dollars.
The global steel and cement industries are worth upwards of $1.8 trillion. With a large number of countries committing to net zero targets in the coming decades, there is a large market opportunity for companies around the world to participate in the decarbonization of these industries. A number of startups are developing innovations around carbon capture, the use of hydrogen in steel and cement production, and also developing unconventional approaches such as using engineered microbes for cement production. Larger established players around the world have also committed to this transition.
🧑🏿🤝🧑🏻For society: towards net zero emissions?
Climate change is the biggest challenge facing humankind now, and the aggressive steps being taken to decarbonize two heavy hitting industries are going to no doubt play a huge role in our global climate change mitigation effort. The fact that governments, organizations and companies around the world are pouring efforts into this transition should be a great source of optimism.
🔮What’s next?
The overall decarbonization of the cement and steel industries is a multi-decade effort, involving multiple technological steps as well as a host of players across the spectrum. At the moment, the costs of switching technologies to low- or zero-carbon alternatives are prohibitive. Not only are technological advances required, but also increased efficiencies and cost-competitiveness. These can come from policy push, or from increased build-out of these new technologies so that they start to achieve economies of scale.
Note: Read more about Ankur Capital and our work in deep science technologies here 👉Ankur Capital
Navigating the Future: The Regulatory Framework for Air Taxis in Urban Areas
By Gael Amouyal, Deeptech Expert
What is going on?
The European Union Aviation Safety Agency (EASA) has announced the release of a comprehensive regulatory framework for the operation of vertical takeoff and landing (VTOL) air taxis in urban areas. This marks a significant milestone, as EASA is the first aviation regulator in the world to issue such a framework, which is aimed at ensuring the safe and responsible integration of VTOL technology into the urban air mobility ecosystem.
What does it mean?
The proposed rules are open for public consultation until September 30 and cover a wide range of technical domains, including airworthiness, air operations, flight crew licensing, and rules of the air. The framework complements existing EU regulations on unmanned aircraft systems (UAS), the unmanned traffic management system (U-space), and certification of VTOL-capable aircraft, as well as EASA's guidance on vertiport design.
One of the key objectives of the regulatory framework is to address general societal concerns and the expectations of EU citizens with respect to safety, security, privacy, environment, and noise. In this regard, EASA has proposed various measures that are designed to promote safe and responsible operations of VTOL air taxis in urban environments.
For instance, the proposed rules include initial limits on the number of vertiports operating in each city, which is aimed at ensuring that the infrastructure is developed in a coordinated and sustainable manner. The framework also envisages the establishment of predefined routes and operating altitudes, which will help to promote traffic deconfliction and avoid noise-sensitive areas. In addition, the proposed rules require a minimum forward visibility of 1,500 meters (4,921 feet) for visual flight rules (VFR) operations, which is aimed at ensuring that pilots have adequate situational awareness to operate safely in urban environments.
Another important aspect of the regulatory framework is the focus on experienced pilots. This is aimed at ensuring that only highly skilled and qualified operators are entrusted with the responsibility of operating these advanced aircraft in complex urban environments.
Why does it matter?
💸For markets: Rapidly Evolving Financial Market
The financial market for air taxis in Europe is rapidly evolving, driven by the increasing demand for urban air mobility solutions. The market is expected to grow significantly in the coming years, with the potential to revolutionize the way people travel in urban environments. Several companies are currently developing air taxi services in Europe, with many more expected to enter the market in the near future. The regulatory framework proposed by EASA is expected to provide a solid foundation for the development of the air taxi market in Europe, helping to attract investment and accelerate the deployment of this innovative technology.
🧑🏿🤝🧑🏻For society: Safe and Responsible !
The EASA regulations on air taxis are expected to have a significant impact on society. The regulations will help to ensure the safe and responsible integration of air taxis into urban environments, providing a new mode of transportation for commuters and travelers. This has the potential to alleviate congestion and reduce travel times, while also providing a more sustainable and environmentally friendly transportation option.
🔮What’s next?
Overall, the proposed regulatory framework for VTOL air taxis in urban areas represents a major step forward in the development of the urban air mobility ecosystem. By addressing the concerns of EU citizens and promoting safe and responsible operations of VTOL air taxis, the framework is expected to accelerate the development and deployment of this exciting new technology.
👋That’is for this edition.
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